
Energy Performance Certificate (EPC), which describes the level of energy consumption of a building, is compulsory for all buildings when sold or leased by the EU Energy Performance of Buildings Directive (EPBD). The less energy a property consumes, the better its energy marking is. Energy marking of buildings became compulsory in January 2008.
The EPBD is based on the Kyoto Protocol on Climate Change. This stipulates Europeans are required to reduce greenhouse emissions by eight percent from the level of 1990 by 2008-2012.
The primary purpose of energy marking is to decrease the energy consumption of buildings and to reduce the negative environmental effects. However, other positive effects are also produced as a result. The certificate functions as product specification of the building. It helps property owners, buyers or future tenants to assess its energy efficiency and expected maintenance costs. The certificate also tells what actions need to be taken in order to improve energy efficiency and the value of the property.
The energy certificate gives the property an energy efficiency classification on a scale from A to G. A property of class A has low energy consumption and a property of class G has high energy consumption. Corresponding classification has already been in use for a long time, among others for household refrigeration devices.
For buildings consisting of more than six apartments, energy efficiency is calculated on the basis of actual energy consumption. For newly-built family houses energy efficiency is calculated on the basis of consumption.
For existing family houses and properties with less than six apartments the energy certificate will be optional. Neither is a certificate demanded for holiday homes used for less than four months a year or buildings with floor areas of less than 50 square metres. For new family houses the energy certificate will be made part of the building permit. An energy certificate will be required when taking a building into use, selling or renting it.
Energy Performance Certificate is valid for four to ten years depending on the type of the property.